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Mexico's Telcel Says 3G Network Problem Solved

MEXICO CITY -(Dow Jones)- The Mexican unit of mobile phone giant America Movil SAB (AMX, AMX.MX) said Friday that it has identified and is in the process of fixing a problem of interference that caused recent loss of service, and that it will compensate affected users with minutes of airtime. In a press release, Telcel said the problems with its 3G network were caused by interference in certain points of Mexico City and that it expected to have eliminated the source "in the coming hours." Telcel, Mexico's largest mobile phone operator, said the compensation for both post-paid and pre-paid clients will amount to 650 million pesos ($54.1 million). In a separate release, the Communications and Transport Ministry said Minister Dionisio Perez-Jacome, and other authorities met with representatives of all four mobile operators in the country--Telcel, the local unit of Spain's Telefonica SA (TEF), NII Holdings Inc.(NIHD) unit Nextel Mexico and Iusacell/Unefon--to discuss quality of service. Telcel didn't specify the source of the interference. Nextel Mexico said in a release earlier this week that its technicians had conducted a series of tests with those of Telcel that demonstrated it wasn't causing interference in the Telcel network. -By Anthony Harrup, Dow Jones Newswires, (5255) 5890 5176, anthony.harrup@dowjones.com

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